Who took a loan secured by real estate? Reviews confirm that getting funds in this way is quite simple. We will deal with this issue in more detail. Various types of loans are secured by credit organizations and private individuals. In order to use this type of lending, an individual needs to own an apartment, house or land - any type of real estate.
Who are provided?
MFIs and individuals provide similar loans secured by real estate using a simplified system. This will require a minimum package of documentation, the involvement of guarantors is not necessary. In this case, specialists urgently go to the location of the property and make a conclusion about its value. Moreover, the transaction can be carried out even if there are debts for utilities. The lender is not interested in the level of income and solvency of the borrower, and it is not required to de-register citizens registered in the dwelling. In addition, it is possible to take a loan secured by real estate if you are the owner of only its share.
Pledge agreement
This transaction is executed in the form of a pledge agreement, the terms of which include the fact that the property is encumbered by the lender, and the borrower from this moment has no right to perform any operations with respect to this property before the expiration of such an agreement. However, the homeowner can live in this house or apartment. What are those who took a loan secured by real estate, reviews? About it further.
MFI Offers
About half of all microfinance organizations offer individuals loans secured by property. Such programs attract customers by the simplicity of the registration process, and the ownership of real estate significantly increases the amount of money that can be provided to them as a loan.
In order to complete such a transaction, the following documents will be required:
- an agreement on privatization or inheritance, donation, sale of a particular object;
- certificate confirming the registration of real estate.
The conditions on which you can get credit loans secured by real estate include a period of 1 month to 1 year, interest rates from 10%, a sum of money in the amount of 80% of the value of the property. The term for issuing money is up to 7 days. The repayment schedule for such loans can be set individually for each specific client, and it is also possible to repay the debt ahead of schedule or postpone payment for up to several years. A loan secured by real estate is issued in cash or as a transfer to the beneficiary's account or plastic card.
Loans secured by property from private investors
The services of individuals who provide a loan secured by real estate also have some advantages. These include:
- Getting a large amount of cash without taking into account official income.
- If the risks are covered by the loan amount, the absence of all kinds of restrictions on its size.
- Help of the lender during the execution of the transaction.
- Possibility of individual loan repayment terms.
Conditions
Loans secured by real estate between individuals are made out, as a rule, on the following conditions:
- interest rates - 13-25% per annum;
- the amount of the loan amount is from 60 to 90% of the market value of the property;
- loan term - up to 5 years;
- a loan agreement is the main guarantor of such a transaction.
Nevertheless, despite all the advantages of this type of lending, individuals who wish to take a loan secured by real estate have a huge risk of becoming victims of fraud. Therefore, such transactions should be concluded with the participation of notaries, as well as carefully delve into the essence of the loan agreement.
Real estate registration on the security: what you need to know
There are many nuances that citizens who want to get such a loan need to know. Some of them include the following:
- Real estate owned by minors and legally incompetent citizens is very problematic to lay down. Also a rare case of acceptance as collateral for a loan are communal apartments.
- Individuals mortgaging their property must take into account the additional costs associated with insuring these properties, which is often required by lenders.
- When making such a transaction, you must invite a qualified lawyer who will be her witness and will be able to carefully check all the conditions of the contract. It also entails additional costs for the borrower.
- When evaluating a property, lenders often underestimate its market value. In order to prevent this from happening, the borrower has the right to invite an independent appraiser.
How can a mortgage loan threaten an individual?
Features of transactions with MFIs
MFIs will approve almost 90% of applications for loans secured by real estate. This is due to the fact that such transactions are very profitable for them. The order of consideration here is as follows:
- The borrower must fill out a questionnaire presented on the official website of the organization, where you must indicate the amount of the loan and information about the mortgage property.
- After this, a response should be received about the preliminary decision of the credit organization.
- The market value of the property is estimated.
- Signing a loan agreement.
- State registration of this agreement.
- Drawing up all the necessary loan repayment schedules and giving the client a sum of money.
According to reviews, loans secured by real estate in Tyumen draw up quickly. Numerous responses confirm that this practice is common.
The documents that the borrower must provide to the MFIs are an extract from the house book, as well as a certificate of ownership of a particular immovable property. On the day of the submission of these documents, an individual can be issued half of the loan amount, and the rest after the state registration of the loan agreement.
Features of transactions with private investors
Individuals who wish to obtain this kind of loan can cooperate with private investors, especially if their priorities include the urgency of receiving a certain amount of money in their hands, as well as a minimum documentation package. Private lenders can offer them to complete a similar transaction in two ways:
- With the help of a pledge agreement, when the property remains in the ownership of the borrower, however, certain restrictions are provided for the disposal of this property.
- When concluding a contract of sale or gift of real estate with a lease and the priority right to purchase it.
Private investors, as a rule, offer their clients to choose the terms of repayment of such loans - at the end of the contract, quarterly, monthly, etc.
So, what do those who take a loan secured by real estate say?
Citizens reviews
Sometimes, when applying for small loans, confirmation of collateral and income of an individual is not required. However, citizens who have already used such services once notice that if a loan requires a large amount of money, then real estate collateral is the only solution to this problem.Such an object can be either an apartment or a private house, or a piece of land.
All methods of lending, especially with the use of collateral opportunities of borrowers, according to customers of banking and other credit organizations, have both pros and cons.
What other reviews are there? Who took a loan secured by real estate and was satisfied?
The benefits of secured lending
So, when it comes to loans using collateral, they are usually inappropriate. Since the client can spend the money received on the loan at his own discretion, no documentary confirmation is required.
The advantage of this type of lending option is that the borrower in this case can borrow a rather large amount of financial resources, but also get the most favorable credit conditions for himself, for example, such as a low interest rate and the absence of documentary support for a loan secured by real estate.
Feedback from citizens who took advantage of this opportunity suggests that it is very convenient and profitable in situations where it is not possible to provide all the documents necessary for lending at the bank, and money is needed urgently.
Cons of loans with collateral
Citizens crediting in organizations of this type consider cons to be a longer loan processing procedure, additional services for insurance and market value of real estate, etc.
Naturally, if there is a collateral, the client's chances of approving the loan application are significantly increased, however, it should be understood that the property that is in the pledge will belong to the credit institution. Until the client repays the debt and closes the loan agreement, he will not be able to dispose of this property on his personal rights. That is, he will not be able to sell such property, donate it to a third party, exchange, make redevelopment, etc. This is also a minus of such lending.
The next minus is that if a client misses loan payments for several months, the credit institution has the right to sue him and also demand the seizure of real estate for its sale. Therefore, before you start issuing such loans, you must really assess your ability to pay the debt, otherwise you can suffer a huge loss in the form of loss of your property.
The list of banks providing loans secured by real estate
Following the information set forth in the customer reviews of banks that have used similar lending programs, banks providing loans secured by real estate include:
- "Orient Express Bank". Here you can take a loan in the amount of over 15 million rubles at 10% per annum for a period of up to 20 years.
- Gazprombank. There are programs in this organization according to which customers can issue amounts of more than 30 million rubles for a period of up to 15 years at an interest rate of 11%. Commissions for granting loans are not provided here.
- Housing Finance Bank. Here you can draw up a loan agreement secured by real estate at 13% per year, where the maximum amount of such a loan does not exceed 6 million rubles for a period of up to 20 years.
- "Sberbank of Russia". Draws loans secured by real estate on a passbook. According to reviews, this option is the most profitable for customers. Interest rates here are small - from 13% per year, the loan amount is not more than 1 million rubles for a maximum period of 10 years. The downside of lending in this bank is that they can offer a sum of money that will not exceed 50% of the market value of a particular object.
- To issue a loan secured by real estate, Promsvyazbank may. Here there is an Alternative program, according to which you can get loans in the amount of up to 10 million rubles at a rate of 14% per year for up to 15 years. Commissions and additional payments for this program are not provided.
Conclusion
Feedback from citizens who have used these and other lending programs against real estate property pledges contains a lot of different information about how the procedure for obtaining a loan at specific banks occurs. However, each company has its own requirements for both the object of securing loans and for customers, their documentation and obligations to pay debts. That is, each credit institution has its own nuances and difficulties, which also need to be taken into account.
